Nuclear power

Nuclear stocks like Constellation Energy and Oklo are on the rise as companies like Google, Amazon and Microsoft gear up nuclear power for their data centers. Much of the proposed $500 billion investment from Oracle, SoftBank and OpenAI will go to help companies building new data centers. These centers need large amounts of electric power and they need it 24/7 so wind and solar will not do the job. The grid cannot support this much power without risking black outs to local communities, so the only other available source is small nuclear units built on site. Most of the new AI construction will be in Texas because of lower taxes. Over the past year, the biggest story in the U.S. power sector has been the massive and looming increase in demand for electricity, most of it driven by data centers that companies like Amazon, Google, Meta, and Microsoft are planning to build to serve their gigantic AI ambitions. While waiting for small nuclear plants to come on line, these data centers will rely on reopening coal plants. This will create more pressure on developing nuclear.